Microsoft Reportedly Explores $7 Billion Texas Power Deal With Chevron, Engine No. 1 To Fuel AI Data Cent

AI Boom Drives Urgent Need For Power In a statement, the three companies said that no definitive agreement or commercial terms have been finalized yet, Reuters reported on Tuesday. The Satya Nadella-led tech giant is working on securing a dedicated electricity supply chain to meet the surging demand from AI workloads. Companies like Microsoft have increasingly been on the lookout for reliable energy sources to support data centers powering AI platforms like Copilot and ChatGPT. $7 Billion Texas Project At The Center The discussions are tied to a proposed natural gas-fired power plant in West Texas, with a reported value of around $7 billion. Initially, the facility could generate approximately 2,500 megawatts of electricity, Bloomberg reported, citing people familiar with the matter. Microsoft, Chevron and Engine No. 1 did not immediately respond to Benzinga's request for comments. Price Action: On Tuesday, Microsoft shares closed at $370.17, up 3.12%. It gained 0.76% to $373.00 in after-hours trading. Meanwhile, Chevron shares closed at $206.90 on during the regular trading hours, down 1.81% and fell another 0.92% to $205 in after-hours trading, according to Benzinga Pro. Benzinga Edge Stock Rankings show that MSFT is in a downtrend across the short, medium and long term, while maintaining a strong Quality score in the 94th percentile. Foto: Photo Spirit / Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.